Equity markets in Europe showed the biggest two-day increase since 2011


Moscow. January 22. Stock indexes in Western Europe rose on Friday, lifting the last two sessions, was the fastest since 2011, and a week-long rally – the strongest since November.

European stocks ended the week in positive territory for the first time this year due to expectations of increased stimulus by the European Central Bank (ECB), reports Bloomberg.

The composite index of the largest enterprises of the region Stoxx Europe 600 according to the results of session have grown on 3,1% – to 338,84 item. Trading volume was 47 percent above the average for 30 days.

The index of the largest companies of the Euro zone Euro Stoxx 50 index gained 2.7 percent. Britain’s FTSE 100 rose 2.2%, French CAC 40 – on 3,1%, German DAX – on 2%.

The growth of European stock indices linked to the statements of the ECB head Mario Draghi made the day before. Speaking on the results of the January ECB meeting, he announced that the leadership of the Central Bank in March to review its monetary policy in connection with growth of risks in the global economy.

“There is hope for more incentives in March, as well as the potential to expand stimulus programs in Japan and China, so if there is a specific positive news about the economy, the recovery is likely to continue in the upcoming week,” said a senior trader stock market from Mirabaud Securities John Plasser.

In addition, on Friday, the research organization Markit Economics published the preliminary reading of the purchasing managers index (PMI) for the Eurozone countries in January.

Composite PMI fell to 53.5 points from 54.3 points in December, while analysts surveyed by Bloomberg had expected a more moderate decline to 54.1 points.

PMI in the service sector fell from a reading of 54.2 to 53.6 points, in the manufacturing sector to 52.3 points from 53.2 points. Experts predicted the change of the first indicator and the expected reduction of the second to 53 points.

Index members of the Stoxx 600 energy companies rose best pace among 19 industry indicators. Capitalization of Tullow Oil jumped 14%, Seadrill by 8.6%.

The value of the securities TOD’s SpA rose 4.9%. Earnings and revenue manufacturer of consumer goods of class “luxury” in the last quarter and 2015 year as a whole exceeded market expectations.

Stock quotes Sandvik, the Swedish manufacturer of tools for Metalworking, grew by 6.6% after the company announced the appointment of its new CFO Thomas Eliasson, who previously held a similar position at Electrolux AB. Electrolux paper fell 0.5%.

The capitalization of Italian Bank Monte dei Paschi di Siena rose by 2.5% (in the course of trading saw an increase of 19%) on news that the Bank moved to an earlier date the date of the BoD meeting dedicated to the financial results for the year of 2015.

Chairman of the Board Massimo Tononi told the newspaper Il Sole 24 Ore that the Bank is not planning to attract new capital. He also did not rule out the participation in Monte Paschi plans of the Italian government to establish a special Bank, which will merge the bad loans from the portfolios of local FIS.